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well, "the economist" is out with its list of most expensive cities in the world based on the price of everyday items. at number five, we have melbourne, australia, my hometown where, unfortunately, a loaf of bread there will set you back an average of $4.84.
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oslo, norway, very expensive city, a pack of smokes governments 15 bucked and number three, sydney, a bottle of table wine will cost you $25 which is a disgrace considering how much wine we produce and the runner up osaka, japan, where a dinner for four costs you $950. world's most expensive city, tokyo, loaf of bread, $9.60. >> thanks for watching "street signs," everybody. >> "closing bell" is next. >> hi, everybody. we enter the final stretch. welcome to the "closing bell." i'm embroemo at the new york stock exchange. this market trying to finish and retake that 14,000 level, not so fast. >> we're coming back here. i'm bill griffith. a see-saw day so far, the market's february volatility does continue and setting up to be an interesting final hour of trade, this being the most
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important hour of the day. as we've noted we'll be watching to see if dow 14,000 is in the cards over the next 60 minutes here. >> also in the show, hewlett-packard. is it really exploring a breakup? i've got my questions here. the stock moving a bit higher today on the spec calculation. former ph ceo carly fiorina here with us as well. >> and a scary story. the federal reserve was hacked. >> what? are you? heard that correctly, maria. the united states federal reserve, the one that ben bernanke heads up, was infiltrated by hackers, and if that can happen to them, is any website safe, we s. we're on top of that developing story at this hour. >> this is a scary story. let's check the market. the dow jones industrial average was positive for a few minutes there. unfortunately, it came right back and went negative again. the dow tune 10.66 points, 13,969 on the industrial average and nasdaq composite weaker and
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the s&p 500 under pressure by the tune of one point. i have to call this a victory seeing that we've seen such a huge run-up, nothing to write home about these losses. >> at this point, that would be the case. >> less talk about this in today's "closing bell" exchange. jim bianco, our guest from alliance bernstein and steven wood joins us at the new york stock exchange and our own rick santelli joins us from chicago. steven wood, what do you make of the volatility we've had so far in february? >> we had high single digits, a lot concentrated in the first number of trading weeks in january so i think there could be some chop but high single digits makes sense. if you look at fundamentals and risk obstacles, for equity markets, that's reasonable. >> you think hit the high for the year. >> i don't know about that. got the russell 3000 and 2000 both above 900. all-time highs but an improving economy, housing, but i think top line is going to be key
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here. top line is going to be very key in 20 tlooen. >> and so far revenue hasn't been keeping up to some expectations so we're looking at the top line. how do you want to allocate capital and, of course, the federal reserve stimulus? >> yeah. so i still think the markets will be higher by the end of this i do think we built in a lot of positive expectations. it would not take a lot in terms of either some hiccup in asia, particularly in china, a slight slowing of growth to get the market to correct a bit. however, i still think consensus expectations for the rest of the year are unusually low, and i think they will be exceeded as we go forward. >> jim bianco you think this is all about the fed right now, don't you? >> the fed has their foot on the gas. the numbers that we've seen so far this year, the numbers have been so-so. the economy has been so-so. if it stays like that, that's actually good. the fed can keep their foot on
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the gas. if the economy approves we start talking about the fed stopping. three 10% corrections since 2009. what do they have all in common? either we talk about the fed stopping or the fed stopped, and i think once the fed stops we'll have another 10% correction, so as long as things stay so-so they can keep the foot on the gas as long as europe doesn't look completely apart. >> what are you watching, jim benco, you've been so prescient on these markets so far. what do you watch to make you feel like, okay, we could be seeing a reversal in sentiment, that this market doesn't want to go higher anymore. what are the key metrix you're focused on? >> i think europe is going to be the first one. never been in the camp that europe is fixed. never been fixed. just goes away for a while and the same problems arrive and if that comes back with a vengeance that could be a problem and the other one is inflation. we have to define inflation. the fed defines it at 2%, 2.5%, not 10 like we had in the 1980s. all the forward measures of inflation are starting to creep up to the highest levels of the
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year, and if they continue to creep higher, that can really put the kibosh on the rallies as well because the force would be forced to step. >> rick santelli, i took your advice this morning from what you said yesterday. when i got up this morning, i looked at the japanese market first thing, big rally, but we didn't follow through here in the u.s., did we? >> the extent or velocity of the stock market, but it definitely works to some extent and especially when you look at what europe has been doing. if you look at our interest rates, bill, they are just not convinced that everything is rosy. i just saw citibank research paper that talked about, you know, they are nervous about europe because it's more of a positive contagion fueled by, well, i can go on and on, but you could have substituted the u.s. for europe in any one of those instances, and the hacking is a big topic on the floor today. many people think, you know, just like everything the fed does, it was probably easier to get into that website than find
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an exit to get out. >> hotel california, as it were. >> yeah. >> steven wood, you've been following the international markets quite a bit. now, we all know that all the central banks around the world have the race to the bottom going on right now. does that make it easier to pick equities, for example, in japan where they are trying to devalue the yen at the same time? >> well, i mean, what's happening in japan right now it makes equities and securities much more interesting in japan. we're standing in the forefront of this global tidal wave of liquidity. the fed has really been a leader on this, but the europeans and my belief as well, it's more of a chronic condition. they are going to be remissions and there's flare-ups as well which we saw on monday but the europeans need unsterilized and quantitative easing and when that happens you've got wind at your back what. that happens, globally diversified, don't be a hero or any given day but security selection will count for more than it has. >> would you buy europe right now? >> i would buy the good parts of
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europe. look north of the alps right now. it's a fishing pond. great companies and strong balance sheets and do a lot of business outside of europe as well in the north so there are good balance sheets but, again, do a lot of homework. >> where are you fishing, steven is going north of the alps? >> i'm cautious on europe, but there are a couple of good things happening. you're seeing a significant decline in unit labor costs, particularly in the periphery which over time could make them somewhat more attractive in terms of economic growth and current account surpluses, but actually right now i'm still fishing primarily in the u.s. and some parts of emerging markets where i think the opportunity are better and less risky. >> let me ask you about interest rates. what rate on the ten-year would bother you, that you would feel like maybe it's worth keeping my money in fixed income as opposed to taking the risk on stocks. what's the sort of magical number in terms of the ten-year or rates in general that you would look at?
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>> well, i think for me, if you get a reformization in interest rates which would mean real rates of around 2.8 and nominal rates of around 5 on the ten-year, i do think that at that point you would have seen reformalization and until then it offers a pure risk reward. >> thank you, gentlemen. >> thanks, guys, so much. appreciate it. a flood of earnings after the bell could have a big impact on the market as well. josh lipton with a preview of the big names. josh, over to you. >> reporter: maria, lots of big names reporting after the bell today, starting with visa. analysts will be watching the overall global payment volume, and more importantly listening to the company's new ceo on his very first conference call. charlie scharf came from jpmorgan where some say he might have been on track for jamie dimon's position. next up green mountain, two stats.
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everybody will concentrate on here, first the brewer shipment figure which determines how many brewers are in people's homes and k-cup sales volatile in the past few quarters. rupert murdoch and news corp., two important metrix to watch, cable fees and advertising growth and the company's tv businesses as the tv businesses account for the majority of the company's earnings and advertising important for yelp. here it's more local watching year over year change in local revenue. this is the core of the business, advertising accelerating or not? last quarter we see a deceleration in that growth rate. back to you, guys. >> thanks so much, josh. in the final stretch of trading for the day. about 50 minutes before the closing bell sounds. a market down but certainly off of the lows. we had been positive. we did already see a bit of a comeback in this market, down about nine points on the industrial average right here. >> let's see if we can finish positive and back to 14,000 today. a lot of talk on the trading floor about 14,000 and how much
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snow we're going to get on friday. quote, this market is a wildly spinning top which is going to end badly, end quote. one of many potentially damaging e-mails the government is using in its lawsuit against standard & poor's so why do executives still send these kinds of messages that exist forever in cyber space knowing that they could come back to haunt them? former top internet analyst henry blodgett, sort of the neil armstrong of e-mails you wish you never sench he'll join us next. >> some of these e-mails are so unbelievable, trashing the securities and then recommending, and they are still sending these e-mails. >> yes, they are. >> also ahead, hewlett-packard, we've got reports that the company may be thinking about breaking it self up. is the best move for both the company and investors? we'll talk with former ceo carly fiorina coming up. stay with us. ♪
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you probably have heard by now the justice department has unveiled the e-mails that it says supports its allegations standard & poor's defrauded investors over mortgage-backed securities ratings ahead of the housing market collapse of a few years ago.
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our senior correspondent scott cohn has details of the potentially damaging document. scott? >> reporter: bill, these e-mails, instant messages and memos are all right here in the 120-page plus $5 billion complaint filed by the justice department this week, and while standard & poor's argues they are cherry picked and taken out of context, these sorts of unplugged comments have become a staple of these cases and a key legal egmont of what the justice department says is a massive fraud. here's s&p managing director david tesher in confidential working notes, december 2006. this market is a wildly spinning top which is going to end badly. remember, that's 2006. a little more than six months later, a newly hired analyst writes jobs going great except for the mortgage-backed world is crashing and investors in the media hate us and in the same thread the analyst sauks about internal pressure within the s&p to downgrade deals much earlier
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and the leadership was concerned about ticking off too many clients. much earlier on in 2004, an executive writes an impassioned e-mail to the top brass complaining that the firm is lowering its standards to win business. what rating implications -- what does rating implication have to do with a search for the truth? are you implying that we might actually reject superior analytics for market considerations? the government claims that is exactly what standard & poor's did. s&p argues otherwise, but legally e-mails written while the alleged fraud was taking place can be a hugely powerful tool in court or in settlement talks or bill, and maria, in the court of public opinion. >> amazing. hour next guest knows this issue firsthand. in fact, he was one of the first to have the government publicly take an old e-mail and tuesday against him. henry blodgett gained fame as an internet analyst during the dotcom bubble, but that fame turned into infamy after regulators charged him with securities fraud for allegedly
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giving stock assessments that conflicted with what he publicly published. >> yes, henry, we have an example. here we go. >> thank you. >> this is allegedly an e-mail that henry wrote. he e-mailed this about online direct company life minders in december of 2000. lfmn at $4. i can't believe what a pos, locality stock, that thing is. shame on me and us for giving them the benefit of the doubt. henry blodgett joins us now head of business insider. the mindset is what? why would you write something if you know, you know of all people, you're very internet savvy, that that's never going anywhere? that can always be used against you. >> let's establish what we know about s&p. they did a horrendous job, along with the other rating agencies during the crisis. they missed the whole thing. there's a huge inherent conflict of interest there. clearly that is coming out in the e-mails. what i would respectfully
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suggest is we don't know yet whether that means that analysts actually lied. what you see is a lot of people after a market crash i knew it was coming. >> to look smart. >> you've got to get in there and see actually did they mean that and just because there was pressure and stress, did they say, you know what, i'm going to lie. just want to keep my job and lie and that's the key question. e-mail is very tough an comes out in all these cases, as you suggested and a lot of problems immediate immediately assuming something with it. >> you bang out an e-mail, send it and then you're not thinking about what it may conjure up or suggest, but this is one of the most important tools that regulators are using. for example, i was stun that had moody's wasn't being investigated but after the e-mails i said, okay, they have something on these guys. they have the e-mails at moody's. >> let's also be clear if what the e-mail shows is clear wrongdoing, good that there's
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e-mail. that's great. >> right. >> and if you're stupid enough to be doing something illegal or wrong and put it in e-mail, you deserve what you get, very obvious. but the problem is let's say we're arguing about a particular stock. maria, apple's going to zero and then we go to commercial and you talk about it. you make a good point, you know, actually that's a good point, i didn't think of that, and i go back and then i have my professional opinion that i issue but i'm on record saying it's going to zero. >> can you really say because you said in an e-mail why are we waiting this stuff, this stuff is garbage, that you're actually sort of manipulating in your head let me defraud somebody? i don't know that it equals defrauding somebody. >> that's right. looking at that e-mail, so i -- i think the e-mail is something like if it was structured by cows we would rate it. >> right. >> it seems as though the deals were structured by cows. they were all terrible, and yet one terrible deal, another terrible deal, here we are. the question is does the rating
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they gave it, was that not in keeping with what s&p's definition of that rating was? if it wasn't, if they said it deserves a "b," whatever it is and they gave it an "a" to keep their job, that's fraud, but stress and interactions and arguments about ratings come out where you come out at something you're comfortable with. that's not fraud. >> right. >> can these e-mails be used to s&p's advantage in some ways? >> absolutely. i would hope and assume there are other e-mails in there where people said, look, i was initially totally uncomfortable with this deal. we did a lot of work on it. i'm comfortable with the rating. >> they have to dig up their own e-mail to make their own point. >> the unfortunate thing about e-mail. the problem, often what happens in e-mails the conversation starts. you get some information and you react to it and you pick up the phone and the conversation there but you can't prove that later. >> right. >> and there's the e-mail sitting there looking like a horrible thing and they look terrible. >> yeah. >> look at them in the documents, oh, my goodness, how could i have learned that.
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>> what's the lesson learned here. >> be incredibly careful in e-mail and only write memo-like e-mails totally boring and bland. the problem is i can tell you that 500 times, and in ten minutes you're going to dash off an e-mail to your friend. >> who is going to find me. >> not just me hiding something, it's interacting. >> one of my new year's resolutions was start e-mailing like a guy because a colleague said to me. >> wait a minute, e-mail like a guy, what does that mean? >> a colleague at nbc gave me great advice, how are you, great to see you, hope all is well, blah, blah, blah, and then you get to the point. get an e-mail from a guy it's like yup, yes. >> okay. >> no. >> you have all of these qualifiers, but it's true. >> the problem is that's the way we communicate. you don't want to be boring and bland with your friends. >> right, right, right. >> you're going back and forth, and if you're mad you want to say i'm mad. this is terrible! and then it comes back later and you're screwed as a result of
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it. so be careful, that's the only thing but you're never going to figure it out. >> did you ever change the way -- >> do you sell e-mail promotions? >> i do, do. >> i can't believe i said that, and me, i'm sure. >> do you still use p.o.s.? >> absolutely, a very term of art. >> henry, thanks very much. >> great to see you. >> we will dive deeper into how damaging this lawsuit is for standard & poor's, by the way, and if it will spread to other ratings agencies when we speak exclusively to former fdic chair sheila bair coming up after the bell today. 40 minutes before the closing bell sounds for the day, a market down about nine points on the dow jones industrial average. >> i think we'll finish positive today, we'll see. disney ceo bob iger breaking news about the "star wars" franchise right here with you on "closing bell" yesterday. let's all remember this. >> we are working on a few stand-alone films. larry kazden and others are working on films derived from great "star wars" characters
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that are not part of the overall sagas. >> "star wars" fans have their fingers crossed. the stock hit a record high today as a result, so is the force still with disney, or is there a danger it could turn to the dark side for investors? that trade coming up next. >> also, the post office ending first class mail delivery on saturdays. now, that could hurt a lot of businesses, but you'll never guess which industry could actually benefit from that. that's coming up. stay with us. [ shapiro ] at legalzoom, you can take care of virtually all your important legal matters in just minutes.
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disney shares hitting that all-time high today after the media giant's earnings beat estimates last night, and company ceo bob iger announced that major news right here on "closing bell" yesterday about its recently acquired lukas films. let's listen again. >> larry kazden and simon are working on films derived from great "star wars" characters that are not part of the overall saga, so we still plan to make "stars stars 7," " 8" and "9" starting in 2015, but there are going to be a few other films released in that period of time, too. >> so with everything seemingly going right for disney, is it time to buy, or is it too late? let's start talking numbers. on the technical side is the
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managing partner at bell point. on the fundamental point it's steve cortes founder of veracruz and cnbc contributor. did i read this correctly, you shorted disney? >> listen, it's not easy to fight a stock that has it at an all-time high but this has gotten very frothy. as a disclaimer i have to admit that i took the disney cruise with my kids a few years ago. let me tell you something it was hell on the water. got the norovirus. i would rather have been on the endurance stuck in the ice than on that boat, but aside from that, i do have real world reasons outside of my own experience to fight disney one, a fundamental one and technical one even though i'm supposed to be the fundamental guy. the fundamental reason is falling wages. wage growth is tepid at best in this economy. b of a put a report out that this week with high gasoline prices and falling wages that's a toxic recipe going forward and the second reason, and when i look at apple versus disney,
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these two stocks until roughly thanksgiving traded very much in unison and we've seen a very we well-advertised plunge. i think that's broader and indicative of the consumer in general so my guess that the apple selling will start to infect disney and i did short it this morning. >> jeff, you're allowed to do some fundamental talk then as well if he brought a chart along. >> that sounds great. bill, i want to know how bill will show up at home tonight. what are his kids going to say? >> exactly. >> absolutely. let's look at the technical charts and the then i'll get into some fundamentals this. stock is up 41% over the last -- last 12 months, up 9% for the year. it's in a long-term trend line. it has, and it just broke above a double top that they have put back in in september, about $53. is it a buy? i'm cautious but a buy on a pullback. don't be afraid of a correction. a correction is a good thing,
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and you want to own disney, so some levels that i would be looking at, the first level is $53. we have confluence there. we have a horizontal support line and we also have a $20 day moving average. if you're an aggressive investor that's a place to look and then on a bigger longer-term trend line i want to see it pulled back there which is $50 a share. that would be a great spot to get in, and, again, steve is bringing up some interesting points about the fundamentals, and he's talking about gas and what not, but their theme parks have increased their growth. that's huge right now and i know my family, not about the cruises. i don't think i could handle a cruise but going to the theme parks, i think my brother does it every year. my sister-in-law, she does it. we all love going to the theme parks. >> jeff? >> i certainly can see things have gone well for disney, that's why i traded to an all-time high today. i'm saying from here i believe it's all about future earnings, and apple is telling us and wage numbers are telling us that 2013 is going to be a lot tougher for discretionary spending. >> steve, you're betting against yoda and skywalker, how can you
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do that? that's the missing link. >> i feel the magic kingdom will become a tragic kingdom for investors in 2013. >> i think of my late great friend tom snider who admitted didn't know a lot about the stock market but in the crash of 1987 he picked up the phone and called his broker and said buy disney because if they take the mouse house down then we're all in trouble. >> exactly. >> and he was right at that time. we'll see. >> thank you. >> thank you, gentlemen. see you later. heading towards the close. i'm telling you. getting close. >> 30 minute left, the dow down just six points. >> do-to-break up or not to break up? that's the question many investors are asking about hewlett-packard. former ceo carly fiorina is here to give us the best insight into the company that has plummeted over the past year. >> and are investors whistling past the graveyard if they think massive across-the-board spending cuts set to kick in soon won't tank the market. we have both sides that have debate coming up. stay tuned. tdd# 1-800-345-2550 you should've seen me today.
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welcome back. as hewlett-packard considering a breakup? that depends on which report you read. jon fortt joins us with the very
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latest. jon, what are you hearing? >> reporter: i'm hearing a breakup is definitely not plan "a" but may be plan "b" or "c." a source close to the company told me hp at this point plans to keep all of its businesses together, given where the company is right now strategically at this point could be a key phrase if meg whitman's turnaround plan doesn't bear fruit next year, all plans will be off. the pc business is pretty important to hp from a cash flow perspective but it's also shrinking. the printer business tied in pretty closely to pcs. hp's enterprise business in servers, storage, networks servicing software but from studying the company they would be very difficult to separate. that's because it's a business built around scale. services were structured to gain margin by capturing a larger share of wallet from big customers so taking this company apart would be like a multi-billion dollar game of
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jenga. bill? >> just trying to picture that. jenga, multi-billion dollar, i like that, jon, thank you. see you later. breakup rumors or not, is hewlett-packard better off broken up? that's the question to be asked. >> really is. former hp chief carly fiorina is here with her thoughts. thanks for joining us. >> great to be with you both. >> what do you think and where do you stand on this? had this been a bit of a discussion point when you were at the helm? >> well, look, i've always come down on the side of saying that hm is more powerful, more valuable together, but certainly i've also said, and i think i said it on your show, maria, just a couple months ago, that hp is at a point where the board should be considering every strategic alternative. yes, we considered that alternative when i was at the helm because it's the responsible thing for a board to do. >> why didn't you go that route? why didn't you go that route? >> got so much synergy out of our supply chain, so much synergy out of our customer relationships, the pc business
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as jon pointed out is a great cash flow generating business and we got a lot of synergy out of our r & d efforts, but, however, the times have changed, and one of the things that has changed is hp has had two fairly major failed acquisitions. hp has milked its product lines for too long without investing sufficiently in them so the growth strategy going forward sun clear so now it's a good time to examine alternatives. >> i was going to ask you, what you felt had changed more, the markets that hp serves or the company itself with some of those failed acquisitions? >> i think both. the market that hp serves has changed dramatically because the pc business is now a shrinking business, not a growing business. >> right. >> dell going private creates some new opportunities. potentially you could complain a dell and a an hp pc business now that might not have been possible earlier and in a shrinking business consolidation is always a more attractive alternative. le nova is now the big
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competitor, and because of a milking of these product lines in the past they don't have an ipad competitor. they don't have offerings where the market is going which is more to mobile devices and hand held devices so all those things have changed. >> let me ask you about the pc business in general, carly, because, you know, we've got dell now going private. you know that over the last couple of years, even hp flirted the idea that, you know, maybe we're going to sell the pc business. is the pc dead. what's going on right now? is it even worth keeping the pc under the hp umbrella? >> see, this is the big question. i don't think the pc is dead, but i think the pc business is definitely ripe for consolidation. hp strategy should never be driven by what dell has done. on the other hand, dell's move to go private opens up some new possibilities. in general i think the pc business is one that has to consolidate, so now you have some different opportunities. dell went private to buy
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themselves some time. i think potentially they are going to be more aggressive in the market, not less aggressive in the marketplace, but never forget that hp's supply chains, their distribution channels, are a huge competitive advantage to them, and once you start to rip apart those supply chains, you lose some of that advantage. >> right. your thoughts on the dell lbo. i mean, was it a wise decision to go private? everybody is pointing to the $15 billion debt load that they will have to service which many feel takes away their flexibility, but at the same time wouldn't you as ceo rather have had a private company rather than having a publicly traded company with everybody looking over your shoulder? >> yeah. i actually think it was a very smart move on michael dell's part. it was clearly a bold move. obviously they have to perform, but i think what going private gives them the opportunity to do is to invest more deeply in r & d without the scrutiny of the public market and pressure of quarterly earnings, and i
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also think it gives them the opportunity potentially to be more aggressive in the marketplace about hanging on to customers or gaining new customers. the other thing would i say is microsoft's bet is very interesting here. ultimately microsoft and intel's pricing is based on volume which is why, maybe, over time, looking at a quinnation of a private dell and an hp could be interesting. >> so do you think then getting out of the pc business or splitting up the pc business for hp would add shareholder value then? >> look, i don't have all the inside facts. i think it's certainly something that will probably look different today than it would have two years ago, certainly five or ten years ago, because it's possible now that the pc business is at a stage, in other words, lower growth consolidating. the lack of innovation in the past puts them at a competitive disadvantage. that's different than several years ago. i think the calculation of that
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reality versus the benefit of a combined supply chain, those numbers could look very different today than they did two years ago or five years ago. >> carl icahn may be buying up shares of hp. is that what the hp board needs is maybe a little activist shareholder going on here? >> well, you know, i've been very candid in saying that i think the hp board needs a lot of self-examination. i certainly think that a shareholder who will get in there and demand a discipline and an account ability on the board's part is not a bad thing. so, you know, carl icahn, that's interesting. hi not heard that, but i'm not surprised by hearing that. >> it would sort of hit his m.o., wouldn't it? >> it certainly would. look, bottom line, this is a company, in my view. this is a board in my view, that now must have the courage to examine every strategic alternative in front of them and to be very disciplined and
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accountable about how they do that. >> yeah. >> all right. we'll leave it there. >> great to have your insights. see you soon. in the final stretch of trading for the day. we've got a market down six points. at the end of the day bill might be right. >> we were down two points a moment ago. maybe that was the peak there. we'll see. >> forget that s&p scandal on mortgages. remember the rate-rigging scandal on libor? that's back in the news. kayla tauschy is here with what w.h.o. has to pay up now. >> not even the federal reserve is safe from cyber hackers. is any institution safe from this fast-growing threat? how you can protect your money. we'll talk about it later coming up on the "closing bell." with fidelity's new options platform,
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. >> the republican party, one of the people they hope can help reverse their slide among republican voters, is going to be delivering the response to president obama's state of the union address next tuesday. now this, of course, is very sensible for republicans not only because he's a charismatic speaker but also because he's taking a lead role on
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immigration reform which is one of the high-profile elements of the agenda early in this congress, one the democrats and republicans are working together, so that would give the republicans an opportunity to showcase their own support for immigration reform and counter some of the message of the president. we've seen over and over again young stars in both parties getting chosen to respond to the president. this is marco rubio's turn. >> thanks very much. john harwood in washington. the interest-rigging scandal back in the news today. kayla tausche is looking at how this story has gotten so big and how this web is growing in terms of cost as well. kayla? >> reporter: libor has been called the world's most important number since it provides the base rate off of which some $500 trillion of securities are priced each year. no surprise then that banks found manipulating this number would face big charges but we're chipping away at that iceberg. rbs announcing a settlement on
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criminal charges that it rigged libor in swiss francs and japanese yen. 21 traders were involved in the practice over six years, one year after the beige was subpoenaed. seven trade verse now been suspended from deutsche bank due to involvement in rate-rigging there. over a dozen banks are still being investigated. just three have settled, and that's with regulators. private litigation will ramp up soon, too, since rates were, in most cases, rigged lower. fixed income investors were cheated out of billions in potential investment. blackrock and fidelity among those weighing lawsuits and investigations are under way at the state level to see how much income is owed to pensions and endowments. a pew reports it's at least $6 billion. even fannie and freddie may have lost $3 billion on interest income in artificially low interest rates. libor will end up being more costly for the banks than the mortgage mess and upwards of $5 billion.
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when you see how endemic this scandal actually was, maria and bill, it's not hard to see why. >> that's for sure. kayla, thanks very much. i never understood why mortgages were tagged along. i asked what's libor? >> he didn't know. >> comforting to the bull. the market is coming down, just a point and a half. i'm telling you, we could finish positive today. >> yeah, it's been a struggle. >> or i may have jinx it had. >> this market doesn't want to go down, looking to retake 14,000, but trader kenny volcari is with us saying investors should be putting money back to work on any market pullback. you've got the buy on the dip mentality. >> you can feel that the market doesn't want to go low. >> we'll talk about it. >> and also, does money poison kids? one financial tycoon thinks so, and he's giving much of his
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wealth away rather than leaving it to his children? coming up, robert frank examines whether kids can turn out okay if they are showered with cash that their parents earned. listen up, children. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say?
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welcome back. >> welcome back. the dow cannot hold on to 14,000. it's close there. see. art cash is here to tell bus it as well. what's an investor to do in a market that doesn't seem to find any direction right now? the aforementioned kenny volcari says this could be a good opportunity to put some cash to work. >> and where should that be? we bring in kenny along with our own bob pinsy. >> welcome. >> hanks for joining us. >> you've got to buy on the dip mentality. >> right. >> put new money to work when the market declines. where do you put it? >> what sectors? >> i think you have to look at whatever you like. i like financials and industrial names so on any pullback, when you talk about a global economy recovering, not only in this country but around the world, you'll talk about big infrastructure projects. >> meat and potato sectors. >> and you want to see financials do better. they have to lead so financials are a name i like. on any pullback there's a lot of demand there. when the market gets weak and soft, it doesn't really collapse
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because there's a lot of money. >> if you get any pullback. >> 1513 we closed on friday. that was the high. we're 1511 essentially right now. >> and this is all about the fed though? i mean, is there anything really fundamental that's driving this? yes, i know housing has bottomed. i know that's what you're going to say, positive signs, but more than the fed, what is it? >> i agree with you. i think it's all fed-driven, and i think it's very clear because every time the fed said it's going to pull out the market gets weak and turns over and if the fed were convinced the economy was ready to go on it's on, it's really a mixed message you're getting. >> i agree that the fed is back stopping the stock market, but earnings are slowly improving. the trough in, was the second and third quarter. >> okay. we'll get a 6% improvement. >> what about revenue? >> what about revenues? >> zero, q3. q4 will be 3% to 4%. i'm not saying it's a great thing and i want to see more revenues, too, but there is evidence that revenues were
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bottoming and i agree we need to do better. a slow improvement in the economy is helping stocks to some extent. >> no doubt about it. but without the fed, the market wouldn't be where it is right now. >> and don't fight the fed. >> you can't fight the fed. >> or any other central banker. >> the market has stalled here, that's clear. >> yes. for four days. >> i know you don't follow the s&p. >> is it the 14,000 level that's the barrier? >> it's the number we're following. >> i think on the s&p it's 1490 and on 14,000, i think it's gotten ahead of itself and it's tired. it needs to consolidate. >> what's the next catalyst we look for, a big earnings report? a piece of economic data? is it a political moment? you've got the state of the union next tuesday. could that do it? >> tomorrow draghi is speaking at the ecb. a lot of people are calling for him to somehow encourage a weaker euro, maybe change the rate structure >> you think he'll jump into the currency war. >> listen. there's pressure on him to do that. the europeans are losing out.
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jps are winning and americans are winning the currency warch the europeans are losing. >> they have not played that game. >> draghi has stayed above all that. there's been very cautious commentary. look at the big global truck engine manufacturer today who said the outlook was very cloudy for 2013. there's a very good reason here when you see this commentary for pain stocks to pause just a little bit here. >> you're right. we did see that on a number of earnings reports. some very bullish on what they looked like and others very positive. if they continue to turn, you may get a technical break because the market is tired and fails and doesn't have to be big newsite them. >> can i do my daily jig for the housing industry? boise cascade is sitting right at the high today, 2665, a company that's closely tied to the housing recovery. >> same symbol. >> bcc, same as it used to be. >> went private in 2004.
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plywood. that's what this is really, their biggest product. >> but it also was an ipo today so all the excitement about it coming back and acpublicly traded company. >> i've had a deja vu seeing bob in the middle that have crowd, i had a deja vu, back to the dick grasso days when i would be pushing around, and there was a lot of action on the floor. >> days that go back to 1947 when i cared the plywood for boise cascade. in my father's building business and hi to carry boise cascade plywood. >> love all the reminiscing, but we must move on. >> yes we must. >> may i show you what's going on. >> look at that. >> pat yourself on the back. >> you're welcome, everybody. >> thank you, bill. thanks for that. >> we're back with the countdown in just a minute here. >> 160 points from a new high. >> visa, green money and it and yelp and instant analysis of all the results coming up. you're watching "closing bell" on cnbc, first in business worldwide. [ male announcer ] it's simple physics...
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movies than early anticipated. after the bell tonight, we will be hearing from a number of companies, two to highlight here. visa. they are expecting $1.79 on revenue of $2.8 billion. more importantly they want to hear from their new ceo and the direction he's going to take that company. the stock is up at this hour as we go to the close, and news corp, they are expecting earnings of 43 cents on $9.28 billion. that stock is down a fraction right now. my friend matt cheslock of virtue financial, what do you see here? mean, you have to admit, this market doesn't seem to want to go down here. >> we keep talking about it every time i come on. >> we only bring you on on up days, by the way. >> that's why it's up right now because i'll take credit for that because it's going against me. visa tonight, this could be an important one as we take about the consumer as we go forward. how much are they going to be impacted as we go down the line? interesting to see what he has to say going forward with the new ceo on board and what he thinks of the

tv
Closing Bell
CNBC February 6, 2013 3:00pm-4:00pm EST

News/Business. Maria Bartiromo, Bill Griffeth. A guide through the most important hour of the Wall Street trading day. New. (CC) (Stereo)

TOPIC FREQUENCY Hp 13, S&p 10, Europe 9, Dell 8, Carly Fiorina 4, Henry Blodgett 3, Bob Iger 3, Apple 3, Steven Wood 3, Larry Kazden 2, Kenny Volcari 2, Carl Icahn 2, Boise 2, Draghi 2, New York 2, Jim Bianco 2, Underarm 2, Moody 's 2, Jon 2, California 1
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